|
Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD 68.25 billion
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CAGR (2023-2028)
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5.58%
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Fastest Growing Segment
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Agriculture
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Largest Market
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Asia Pacific
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Market Overview
Global Ammonia Market has valued at USD 68.25 billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 5.58% through 2028. Ammonia is a colorless gas with a
strong and pungent odor. It is composed of three hydrogen atoms bonded to a
single nitrogen atom, giving it the chemical formula NH3. This compound
exhibits high solubility in water and readily forms ammonium ions (NH4+) when
dissolved in aqueous solutions. Ammonia plays a vital role as a chemical
compound in various industries and applications. One of its primary and crucial
uses is in the production of fertilizers, where it serves as a key source of
nitrogen necessary for optimal plant growth. Additionally, due to its
exceptional ability to absorb significant amounts of heat when evaporating,
ammonia is extensively utilized as a refrigerant, making it highly effective as
a coolant agent. Furthermore, ammonia finds utility in the manufacturing of
cleaning agents, explosives, and various other chemicals, contributing to a
wide range of industrial applications.
With the rapid pace of urbanization,
infrastructural development, and increasing construction activities across the
globe, the demand for ammonia-based construction materials is witnessing
significant escalation. For example, ammonia is widely employed in the
manufacturing of construction materials such as adhesives, coatings, and
resins. It is an essential component in the production of particleboards,
plywood, laminates, and various synthetic materials extensively used in
construction applications.
Moreover, ammonia finds extensive application in
water treatment processes and wastewater management. It is commonly used in
both industrial and municipal wastewater treatment plants to remove
contaminants and pollutants through processes such as biological nutrient
removal (BNR). In addition, the versatility of ammonia as a cleaning agent
extends to industrial cleaning, where it is used for equipment maintenance,
degreasing, and stain removal. The expanding cleaning industry, driven by
rising cleanliness standards, is contributing to the growth of the ammonia
market. Furthermore, the expanding cosmetics and personal care industry,
propelled by changing consumer preferences and an increased focus on self-care,
is fueling the demand for ammonia-based products in this sector.
Key Market Drivers
Growing Demand of Ammonia in Agriculture Industry
Ammonia, a compound of nitrogen and hydrogen, plays
a pivotal role in the agriculture sector. It is primarily used in the
production of fertilizers, which are essential for plant growth and yield
improvement. The availability of nitrogen, a key component of ammonia, is
crucial for photosynthesis, protein synthesis, and other physiological
functions that contribute to plant growth and overall productivity.
Ammonia is utilized in the production of various
types of fertilizers, including urea, ammonium nitrate, and ammonium sulfate.
These fertilizers are widely used in crop production to enhance soil fertility,
promote healthy plant development, and increase crop yields. The use of
ammonia-based fertilizers has become even more significant with advancements in
technology and the adoption of precision agriculture techniques.
Advancements in technology have led to more
efficient and sustainable use of fertilizers. Precision agriculture techniques,
for instance, enable farmers to apply fertilizers more accurately, reducing
waste and environmental impact while maximizing crop yields. This promotes the
use of ammonia-based fertilizers, further driving the global ammonia market.
In conclusion, the growing demand for ammonia in
the agriculture industry is a major driver of the global ammonia market. As the
need for food continues to rise with the growing global population, and as
advancements in agricultural practices promote more efficient use of
fertilizers, the demand for ammonia is expected to continue its upward
trajectory. By understanding the vital role of ammonia in agriculture and its
impact on crop productivity, stakeholders can make informed decisions to
support sustainable farming practices and ensure food security for future
generations.
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Growing Demand of Ammonia in Pharmaceutical
Industry
Ammonia, a compound consisting of nitrogen and
hydrogen, possesses a wide array of applications within the pharmaceutical
industry. It serves as a fundamental building block in the synthesis of various
pharmaceutical products, including antibiotics, antimalarials, and vitamins.
The significance of ammonia extends to its pivotal
role in the production of active pharmaceutical ingredients (APIs). APIs are
the crucial substances in drugs responsible for producing the intended effects.
Many of these APIs are synthesized through the utilization of ammonia or its
derivatives.
Moreover, ammonia solutions find extensive usage in
pharmaceutical manufacturing for pH regulation. The control of pH levels is of
utmost importance in drug formulation to guarantee stability, shelf-life, and
efficacy.
As global health concerns continue to escalate, the
demand for pharmaceutical products is experiencing a substantial upsurge. This
surge in demand is consequently driving the need for more APIs, further bolstering
the demand for ammonia. The emergence of health threats, such as the ongoing
COVID-19 pandemic, has underscored the criticality of a robust pharmaceutical
industry, thereby fueling the growth of the ammonia market.
In conclusion, the escalating demand for ammonia
within the pharmaceutical industry serves as a significant driving force behind
the global ammonia market. As health concerns continue to rise on a global
scale, and as the pharmaceutical industry actively responds to these
challenges, the demand for ammonia is expected to keep pace. The crucial role
of ammonia in drug synthesis and pH regulation, coupled with the escalating
need for APIs, further emphasizes its indispensable nature within this critical
industry.
Key Market Challenges
Lack in Availability of Raw Materials
The production of ammonia heavily relies on fossil
fuels, particularly natural gas. Approximately 40% of the energy input in
ammonia production is consumed as feedstock. Natural gas is the preferred raw
material in newer ammonia plants due to its lower carbon footprint and
cost-effectiveness. However, the availability and cost of these resources can
significantly impact the ammonia market.
In recent times, the ammonia industry has
experienced supply chain disruptions, leading to shortages. This has triggered
a ripple effect across various sectors, particularly in agriculture, where
ammonia-based fertilizers are crucial. The lack of raw materials for fertilizer
production has led to an increase in prices.
Raw material prices have a direct impact on the
cost of producing ammonia. While there have been instances of declining prices,
the general trend shows an increase. This fluctuation adds a layer of
uncertainty to the market and poses a challenge for manufacturers. Furthermore,
variations in geopolitical factors and trade policies can further affect the
availability and pricing of raw materials, adding complexity to the situation.
The lack of availability of raw materials and their
fluctuating prices poses significant challenges for the global ammonia market.
These factors contribute to increased production costs, which can lead to
higher prices for end-users. They also add uncertainty to the market, making it
difficult for manufacturers to plan and make strategic decisions.
While the demand for ammonia continues to rise,
driven by its applications in various industries such as agriculture,
pharmaceuticals, and chemical manufacturing, the lack of availability of raw
materials presents a significant challenge. Addressing this issue will require
concerted efforts from industry players, policymakers, and researchers. This
might include exploring alternative raw materials, improving supply chain
resilience, and investing in technologies that can make ammonia production more
efficient and sustainable. Furthermore, collaboration between different
stakeholders in the ammonia industry is crucial to ensure long-term stability
and growth.
By addressing the challenges related to raw
material availability and pricing, the ammonia industry can pave the way for a
more sustainable and secure future. This will not only benefit manufacturers
and end-users but also contribute to a greener and more resilient global
economy.
Key Market Trends
Growing Interest in Green Ammonia
One of the key factors driving the growing interest
in green ammonia is its immense potential to decarbonize the power and shipping
industries. As these sectors grapple with the monumental challenge of reducing
their greenhouse gas emissions, green ammonia emerges as a highly promising and
viable solution. It has the remarkable capability to be utilized as a
carbon-free fuel in power generation, ensuring a cleaner and more sustainable
energy source. Moreover, green ammonia can also serve as a clean-burning fuel
in shipping, significantly reducing the environmental impact of maritime
transportation.
In addition to its impressive potential in power
and shipping, green ammonia holds great promise in the agriculture sector.
Traditional ammonia production, primarily used for fertilizer manufacturing,
has long been a significant contributor to global CO2 emissions. However, the
industry is now shifting towards more sustainable practices, and green ammonia
emerges as an environmentally friendly alternative for fertilizer production.
By substituting traditional ammonia with green ammonia, the agriculture sector
can make substantial progress in reducing its carbon footprint and moving
towards more sustainable and eco-friendly agriculture practices.
The United States, with its strong commitment to
sustainability, has witnessed robust growth in both the consumption and
production of green ammonia. The country's increasing investments in green
ammonia facilities further support its position as a leader in the green
ammonia market. This positive momentum is expected to continue, driving the
growth of green ammonia, and further solidifying the United States' role in
promoting a sustainable future.
In conclusion, the surging interest in green
ammonia reflects a broader and commendable trend towards sustainability in the
global economy. As industries across various sectors strive to find effective
solutions to reduce their environmental impact, the demand for green ammonia is
poised to rise significantly. This not only presents a significant opportunity
for the global ammonia market but also signifies a critical step towards a more
sustainable and greener future for all.
Segmental Insights
Form Insights
Based on the category of form, the liquid segment
emerged as the dominant player in the global market for Ammonia in 2022. Throughout
the projected timeframe, the ammonia market is anticipated to experience
significant growth. This can be attributed to the increasing demand for ammonia
in various end-use applications. Ammonia, in its purest form known as
dehydrated ammonia, is completely free from any water molecules. It exists as a
noxious gas that emits choke-inducing vapors and is primarily used as a
fertilizer. However, when used as a food ingredient, it is transformed into a
colorless, clear liquid. The process of making ammonia involves combining three
sections of hydrogen with a component of nitrogen.
In addition to its role as a fertilizer, ammonia
also finds extensive use in commercial cleaning tasks and the production of
specific compounds. In its diluted state, it is easily utilized for various
cleaning purposes in commercial settings. Moreover, ammonia in its liquid form
is commonly employed in residential and commercial cleaning applications. It is
condensed into a fluid and combined with various plant stimulants to create
effective fertilizers. Interestingly, when ammonia reacts with moisture content
in the gas phase, it contributes to the production of ammonia-rich soil, which
is highly beneficial for fertilizing plants.
The versatility and wide range of applications of
ammonia make it a valuable substance in various industries. Its significance in
agriculture, cleaning, and chemical production highlights its importance in
today's world.
End User Insights
The agriculture segment is projected to experience
rapid growth during the forecast period. Ammonia is not only regarded as a
significant supply of nitrogen, which is crucial for plant growth, but it also
plays a vital role in the production of various liquid fertilizer mixtures.
These mixtures often include urea, aquatic ammonia, and ammonium salts. Due to
its rapid reactions with soil moisture, free hydrogen ions, organic matter, and
silty clay, ammonia finds extensive use in agricultural applications. Its
utilization in the industry is further enhanced by characteristics such as
infiltration rate, land quality and architecture, and application method.
Beyond agriculture, ammonia has found its
applications in a wide range of sectors. It is utilized in textiles,
pharmaceuticals, domestic and industrial cleaning, food and drink industries,
metallurgical operations, wastewater and water treatment, polymers, pulp, and
paper production, as well as leather processing. This versatile compound has
gained popularity due to its efficiency, environmental friendliness, cost-effectiveness,
lower pipe size requirements, and superior heat transfer capabilities.
Interestingly, ammonia is even used as a refrigerant due to its excellent
cooling properties.
With its diverse applications and remarkable
properties, ammonia continues to be an indispensable compound in various
industries, contributing to their growth and development
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Regional Insights
Asia Pacific emerged as the dominant player in the Global
Ammonia Market in 2022, holding the largest market share in terms of both value
and volume. The expansion of the ammonia market in the Asia Pacific region can
be attributed to various factors. Firstly, the presence of numerous
international companies has contributed to the growth of this industry.
Additionally, the increasing demands for agricultural goods in the area have
further fueled this expansion. Leading nations in the ammonia sector, such as
India and China, have played a significant role in driving the market forward.
Over the past two years, prices in the ammonia
market have experienced a consistent decline on a global scale. This can be
primarily attributed to the widening imbalance between supply and demand in the
country. The increased production coupled with decreased demand has resulted in
an oversupply of ammonia, leading to the downward pressure on prices.
Several factors have contributed to the reduced
demand for ammonia. Lower food and crop costs, dim financial outlooks, erratic
power prices, and intensifying competition have all influenced the market
dynamics. However, it is worth noting that China remains the top consumer and
manufacturer of ammonia globally. Holding a market share of over 50% in the
Asia Pacific region, China's ongoing large-scale manufacturing and extensive
use of ammonium continue to drive the overall growth of the industry.
China's expanding industrial capacity has further
propelled its production capability, supporting the continuous growth of the
ammonia market. With the implementation of expansion strategies by Chinese
businesses, it is anticipated that the ammonia industry will continue to expand
over the projected timeframe.
Recent Developments
- In June 2023, BASF SE and Yara Clean Ammonia joined
forces to embark on a joint study aimed at developing and constructing a
world-scale low-carbon blue ammonia production facility. This facility, located
in the US Gulf Coast region, is projected to have a remarkable total capacity
of 1.2 to 1.4 million tons per annum, incorporating carbon capture technology.
The collaboration between these two industry giants is driven by the shared
goal of meeting the surging global demand for low-carbon ammonia, while
bolstering their commitment to sustainable practices.
- In May 2023, SABIC Agri-Nutrients Company and IFFCO
announced a strategic collaboration, with the aim of importing 5,000 metric
tons of certified low-carbon ammonia from Saudi Arabia to be utilized in
IFFCO's fertilizer production. This partnership not only signifies a significant
step towards reducing carbon emissions in the industry but also positions IFFCO
as a key player in the ever-evolving market for low-carbon ammonia. By
leveraging the expertise and resources of both companies, this collaboration is
expected to deliver substantial business growth for IFFCO.
- March 2023 witnessed an important milestone in the
ammonia industry as CF Industries Holdings Inc. finalized the purchase
agreement of the Waggaman ammonia production facility from Incitec Pivot
Limited. This facility, boasting an annual capacity of 880,000 tons, is set to
become a crucial asset for CF Industries and its subsidiary, Dyno Nobel. With
this acquisition, CF Industries gains the ability to provide up to 200,000 tons
of ammonia annually for the next quarter-century, solidifying its position as a
leading provider of this vital resource.
- In October 2022, Nutrien Ltd unveiled its ambitious
plans to construct a state-of-the-art "Clean Ammonia" plant at its
Geismar facility in Louisiana, USA. The company has partnered with thyssenkrupp
Uhde, renowned for its cutting-edge technology, to bring this vision to life.
With a capacity of 3,500 metric tons per day, this groundbreaking plant will
play a pivotal role in driving the global transition towards sustainable ammonia
production. The construction of this advanced facility is anticipated to
commence by the end of 2023, marking a significant milestone in Nutrien's
commitment to a greener future.
Key Market Players
- BASF SE
- Casale SA
- CF
Industries Holdings, Inc.
- Chambal
Fertilisers and Chemicals Ltd
- Csbp Ltd.
- EuroChem
Group AG
- Koch
Fertilizer, LLC.
- Nutrien
Ltd
- Rashtriya
Chemicals and Fertilizers Limited
- SABIC
|
By Form
|
By End User
|
By Region
|
|
|
- Agriculture
- Textiles
- Mining
- Pharmaceutical
- Refrigeration
- Others
|
- North
America
- Europe
- Asia Pacific
- South
America
- Middle East
& Africa
|
Report Scope:
In this report, the Global Ammonia Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
o Liquid
o Gas
o Powder
- Ammonia Market, By End User:
o Agriculture
o Textiles
o Mining
o Pharmaceutical
o Refrigeration
o Others
- Ammonia Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Ammonia Market.
Available Customizations:
Global Ammonia Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Ammonia Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]